Fisher & Paykel Healthcare Builds Momentum as Revenue, Profit and Dividends Rise

About  Fisher & Paykel Healthcare Corporation Ltd

Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH) designs, manufactures and markets medical products and systems used in acute and chronic respiratory care, surgery and the treatment of obstructive sleep apnoea. Its products are sold in more than 120 countries and are used across hospitals, homes and long-term care settings. The business is centred on respiratory humidification, nasal high flow therapy, non-invasive ventilation, anaesthesia, surgery and sleep apnoea treatment.

Revenue and profit growth remained strong

The headline result showed a business continuing to compound from a strong base. Operating revenue rose 14 per cent to NZ$2.31 billion, or 12 per cent in constant currency. Net profit after tax increased 24 per cent to NZ$468.5 million, or 28 per cent in constant currency. This was a strong earnings outcome given the company continued to invest heavily in product development, manufacturing capacity and global market reach.

Operating profit before financing costs increased 25 per cent to NZ$636.4 million, while operating margin improved to 27.6 per cent. Gross margin also improved to 63.7 per cent, up 80 basis points on a reported basis and 122 basis points in constant currency. That improvement was achieved despite the impact of US tariffs on hospital products sourced from New Zealand, showing the benefit of continuous improvement initiatives and operating discipline.

The result also reflected strong regional growth. North America revenue increased 14 per cent to NZ$1.11 billion, Europe revenue rose 15 per cent to NZ$620.1 million, Asia Pacific revenue increased 13 per cent to NZ$476.1 million, and other regions grew 16 per cent to NZ$106.1 million. This broad geographic performance suggests Fisher & Paykel Healthcare is benefiting from both product demand and deeper international penetration.

Hospital remained the main growth engine

The Hospital product group was the standout contributor. Revenue increased 18 per cent to NZ$1.51 billion, or 15 per cent in constant currency. This division includes products used in respiratory, acute and surgical care, including invasive ventilation, non-invasive ventilation, nasal high flow therapy, anaesthesia and surgery.

Hospital consumables revenue increased 16 per cent, or 14 per cent in constant currency. New applications consumables revenue grew 18 per cent, or 16 per cent in constant currency. This is an important growth indicator because consumables revenue tends to reflect ongoing clinical usage rather than one-off hardware demand.

The growth was especially notable because it came during a period when hospital admissions for seasonal respiratory illnesses in the United States and other major markets appeared more subdued than in the prior year. That suggests clinical practice change remains a key driver, with more healthcare providers adopting Fisher & Paykel Healthcare therapies across hospital settings.

Hardware sales also supported the result, with strong demand for products such as the F&P Airvo 3 and F&P 950 System. These systems support respiratory care and nasal high flow therapy, helping hospitals manage patients across different levels of acuity.

Homecare continued to grow

The Homecare product group also delivered solid growth. Revenue increased 8 per cent to NZ$802.7 million, or 7 per cent in constant currency. Homecare includes products used to treat obstructive sleep apnoea and provide respiratory support in the home, including masks, flow generators, interfaces and data management technologies.

OSA masks revenue increased 7 per cent, or 5 per cent in constant currency. Growth was supported by newer mask ranges, including F&P Solo and F&P Nova. The F&P Nova Nasal mask was launched in the United States in January and received a positive early response.

This segment remains important because it gives Fisher & Paykel Healthcare exposure beyond hospitals, into home treatment and long-term respiratory support. As more patients receive care outside hospital settings, Homecare provides a complementary growth pathway.

Innovation remained central

Fisher & Paykel Healthcare continued to invest meaningfully in research and development. R&D spend was NZ$235.5 million in FY26, equal to around 10 per cent of operating revenue. Over the past decade, cumulative R&D investment has exceeded NZ$1.5 billion, reflecting the company’s long-term commitment to product innovation and clinical practice change.

The company also made progress on additional manufacturing and product development capacity. Construction continued on the fifth building at its East Tāmaki campus in Auckland, which will add space for product development, manufacturing and warehousing. The new facility is expected to provide additional capacity for collaboration, usability labs, model shops and operational growth.

Clinical adoption also continued to support the business. Fisher & Paykel Healthcare highlighted additional nasal high flow clinical practice guidelines during the year, including recommendations across emergency department care, pneumonia treatment and COPD-related respiratory failure. These developments matter because clinical guidelines can help convert research evidence into everyday hospital practice.

Dividends and cash generation improved

Cash generation remained strong, with net cash flow from operating activities increasing 21 per cent to NZ$663.2 million. Basic earnings per share increased 24 per cent to 79.8 cents.

The board approved a final dividend of 33.0 cents per share, taking the total FY26 dividend to 52.0 cents per share. That represents a 22 per cent increase on FY25. The final dividend carries full New Zealand imputation credits and is scheduled to be paid on 3 July 2026, with a record date of 23 June 2026.

Outlook

Fisher & Paykel Healthcare expects FY27 operating revenue of approximately NZ$2.45 billion to NZ$2.57 billion and net profit after tax of approximately NZ$500 million to NZ$550 million, based on 30 April exchange rates. The outlook assumes gross margin improvement, while also incorporating an estimated 50-basis-point net gross margin impact from US tariffs and the Middle East conflict.

The main positives are strong Hospital growth, continued Homecare momentum, higher margins, disciplined R&D investment, global reach and a growing dividend. The main risks are tariffs, currency movements, supply chain disruption, hospital demand variability and the need to keep converting clinical evidence into broader adoption. Overall, Fisher & Paykel Healthcare appears to be entering FY27 with strong momentum, a clear innovation pipeline and a larger global platform for sustainable growth.